Home Loan: Every sector is being digitized rapidly. Artificial Intelligence (AI) is considered a future. The home loan sector is also not untouched by this. In such a situation, the question arises that what will be the future of the home loan? How digitization and AI are increasing in this sector. How will the customers take home loan benefit from this, Moneycontrol spoke on all these issues from Basic Home Loan CEO and co-founder Atul Monga:
Will the home loan be completely digital in the coming time?
Yes, the home loan will become completely digital, real-time and personalized in the coming time. According to an estimate, the digital loan market in India will reach a mark of $ 515 billion by 2030. It is expected that taking a home loan in the coming time will be as easy as booking cabs. Neither the need for paperwork, nor the hassle of going to the branch. Loans will be processed immediately, updates in real-time. Customers will get easy and transparent experience in the entire process.
Will AI Powered Chatboats or Virtual Loan Advir become an integral part of the country’s loan market?
Till some time ago, all the work was done with non-AI technology, in such a situation it was almost impossible to monitor everything. However, now the role of AI has increased. In the coming time, AI will make the loan easier and personalized. This will solve the difficulties faced in the entire process of loan.
We are also bringing AI in basic home loans. This is the first AI platform of the industry that can make the entire journey of buying a house very easy through generative AI. It supports more than 30 Indian languages, understands Hinglish and guides the user for a loan process through voice and screen. In such a situation, it will give easy and better experience to users of Tier 2 and Tier 3 cities especially.
How are Fintech players changing the process of loan application and approval?
We use advanced AI models keeping the loan provider in mind, so that more than 300 parameters such as credit data, back policy, intentions to take loans can be understood. Being a Fintech loan provider, we make the loan process easier by using AI and automation.
We try to solve the difficulties of today’s era through modern solutions such as SL processing, manual paperwork and limited visibility. Due to all these innovations, the processing of the loan can occur in minutes and the entire system becomes sharp and transparent.
Today the government is giving the most importance to affordable housing. Despite this, middle and lower income people are struggling to get loans. How can Fintech and Loan Providers solve this difficulty?
I believe that Fintech and common loan providers, data and smart credit assessment tools can help more and more people to get home loans. Due to lack of formal credit history of many people with low income groups, they could not get a loan easily.
But based on their everyday data such as rent payment, use of mobile phones, utility bills, spending habits etc., loan provider can understand how the person applying for loan manages his money. In such a situation, the loan process can be made more transparent and smart with AI tools and local support.
Do you think the definition of affordability in urban India should be changed amid the rising prices of property?
In the current situation, it is difficult to find houses up to Rs 45 lakh in metros like Mumbai, Bengaluru or Gurugram for the middle income group. Such houses are either not in a good location, or are not living in the middle class.
Now suppose the average income of a family is Rs 10 lakh annually. After daily expenses, they invest or save 25-30 thousand rupees. In the metros, a house of Rs 75 lakh can usually be found, that is, they will have to take a loan of Rs 50 lakh. Its EMI will sit about 30-40 thousand rupees. In such a situation, changes should be brought in policies.
I believe that this gap can be overcome by putting houses up to Rs 75 lakh in the metros in an affordable category and by taxing CLSS Income Eligibility more than Rs 9 lakh.
Also read: Can a loan recovery agent come to your home or office or not, what are your legal rights?
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